MLGW board briefed on high gas prices - WMC Action News 5 - Memphis, Tennessee

MLGW board briefed on high gas prices

For the fourth time since September, MLGW board members were briefed on the still high cost of natural gas.

Prices spiked after the hurricanes, from a low of $5 before Ivan, up to nearly $16 after Katrina and Rita.  It's down to about $10 now, but new figures show the costs are still being passed on to consumers.

MLGW says pipeline and natural gas costs will account for 85% of your total bill this winter, compared to 79% last year.

"Its obvious that natural gas prices have gone through the roof and for our customers its still going to be a very expensive proposition for them and that's the difficulty we face as a community in regards to how our customers are going to manage this," MLGW board commissioner Nick Clark said.

It's the utility's job to make sure they're getting the best price for you and they say they are.

"What we're doing is try to go out on the open market when we buy natural gas to assure that we get the best rate for our customers," MLGW Vice President and General Counsel, Odell Horton, Jr said.

And some news that's good for you, but bad for MLGW's bottom line- the utility says they are seeing the effects of their warnings about high utility bills. They say average residential use is down, a result of people conserving energy this winter.

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